What provision allows the policyowner to reactivate a lapsed life insurance policy with proof of insurability?

The provision that allows a policyowner to reactivate a lapsed life insurance policy by providing proof of insurability is known as reinstatement. This option is essential for policyholders who may have missed premium payments and allowed their policy to lapse. Reinstatement policies generally require the insured to prove that they are still insurable based on current health standards. This means submitting a new application or proving that their health status has not significantly deteriorated since the policy lapsed, thus ensuring that the insurance company can continue to provide coverage based on a current assessment of risk.

The reinstatement process typically has a specific timeframe within which the policy can be reinstated after lapse, often ranging from a few months to a couple of years. This helps ensure that coverage is reestablished without having to start a new policy, which could involve different premiums and conditions based on the insured's age and health at the time of purchase.

The other options present distinct concepts unrelated to the act of reactivating a lapsed policy. Conversion refers to changing a policy from one type to another, such as from term to whole life, without needing to provide evidence of insurability. Replacement involves replacing an existing policy with a new one, which can have a different set of